Planning to renovate your home, level up on your education, or just need an extra bit of relief after a salary cut? Our Personal Loan offers many features which give you more value than you might have expected. With our low interest rates and flexible repayment terms, it’s an easy choice to make. Apply for a Personal Loan with African Bank today – APPLY NOW
Why applying for a loan can benefit you?
You’d typically be looking at applying for a personal loan to overcome a large, once-off expense. This could be something like renovating your home office, replacing your laptop or to cover an unexpected major expense.
- Easier to manage
Having one, fixed payment per month is a lot easier to manage than having multiple credit cards with different interest rates. It is a predictable repayment schedule, where you know exactly how much you would be required to pay back per month.
- More money than a credit card
A personal loan could provide you with a larger amount of money than a credit card limit, and potentially at a better interest rate. This is because you would be paying a fixed rate per month.
- Better credit rating
By taking out a loan and paying it back within the time frame specified, you’re improving your credit rating. Should you require another loan in the future, banks would be more willing to lend you the money because they know you’re a reliable lender. In the current economy, you never know when you may need to apply for another loan.
5 simple and effective tips to saving money while in lockdown
Saving for the future is something we should all be doing but sometimes it's just not that easy. Especially now when the future is so unpredictable.
We know that many South African’s have experienced pay cuts and job losses as a result of the National Lockdown, so saving may not be an option right now. But for those who are able to, or who may be able to start saving again soon, we’ve put together a few easy techniques to start putting away money each month.
- Setup a budget
This is one of the first rules when it comes to making sure that your money goes further. Although not the most exciting of tasks, knowing the amount that you have coming in versus the amount that you have to spend each month will help you gain an understanding of where you’re able to cut costs.
You can start by trying to use the 50/30/20 rule. This is where you use 50% of your after-tax income towards essentials; 30% for optional extras; and 20% towards savings or paying off debts. Although this may be easier said than done, especially in tough times, attempting to work towards this ratio can benefit you in the long run.
- Keep it simple/stay at home
Thanks to the National Lockdown, we’ve all seen how it is possible to cut back on non-essential spending, such as takeaways or going out to restaurants. Keep up the habit of cooking more meals at home. And make sure that you’re only spending money on necessary groceries when you do the shopping to cut down on wastage.
- Cancel subscriptions/memberships that you don’t need
Have a look at your monthly bank statements for recurring costs and decide what you’re able to do without. Perhaps you don’t need more than one streaming service, or can keep up your home based fitness program rather than going back to the gym. Make sure that you’re only paying for services that you need and use.
- Now is the time to stop impulse buying
If something has caught your eye but it’s not 100% essential, why not give yourself a waiting period of 2 weeks. It’s likely that after a couple of days you’ll either have forgotten about it or realised that it was something you can live without.
- Set a savings goal
Set goals that you’d like to save for and work out how long it will take you to achieve each of them. We understand that the future is unpredictable right now, so rather aim for short-term goals. And if you don’t quite hit your goal, don’t be too hard on yourself. It’s okay, you can try again next month.
Personal Loans Frequently Asked Questions
Whether you’re looking to get a head-start on a business idea, redecorate your home or just need that little bit extra to tide you over during tough times, requesting a personal loan can be intimidating. To make the process simpler, we’ve answered some of the most frequently asked questions that someone in your shoes may have.
What is a personal loan?
A personal loan is a way to overcome a large, once-off expense e.g. a home renovation or the purchase of a car. You would receive the approved amount in full and pay it back in monthly instalments with interest. It’s normally an unsecured loan, which means that the value of the money you’re borrowing is not being held against the value of your possessions as a deposit of sorts.
What is the difference between a personal loan and a credit card?
A personal loan is when you receive the agreed-upon money in a lump sum and pay fixed monthly instalments within a set amount of time. You would normally opt for this if you need a larger sum of money.
A credit card has a pre-set credit limit. You can borrow money up until that limit, as and when you need it, but need to ensure that you pay the monthly interest fee. You would usually use a credit card to lend smaller amounts of money on a more frequent basis. Like buying your monthly grocery shopping or refreshing your winter wardrobe.
How much money can I borrow?
With African Bank, you could qualify for a loan of up to R250 000. Which we deposit directly into your bank account.
How much time do I have to pay back the loan?
African Bank offers flexible terms of between 7 and 72 months to repay your loan.
How do I get a personal loan?
Applying for a personal loan with African Bank is easy. You’re able to apply online, on the phone or at your nearest branch.
Make sure that you have the following documents handy:
- Most recent proof of income, reflecting 3 salary deposits.
- Proof of residence not older than 3 months.
- Latest bank statement reflecting 3 salary deposits.
When the news came in May that African Bank opened for banking, I switched immediately. Zero monthly charges and I will save R100 per month. I am a rational optimiser, not married to a bank. I am mostly a transactional user and I don’t see a reason why EFT should cost money. Also, why monthly charges? Banks should make money by taking our deposits and investing them, not by paying R2.20 for EFT. Big banks must learn.
I'm very impressed with this new African Bank offering. Took me 5 mins to open a bank account today. Left with my printed 'black' card! You can also add & link family members to your account & they can transact with their own individual cards. Check it out.
What types of loans does African Bank offer?
If you’re a first-time lender, it can be confusing as to which type of loan is best suited for your needs. Below is a simple overview of the different types of loans we offer and what they are most typically used for.
- The Personal Loan
These loans are commonly used to overcome a once-off expense such as furnishing your home office or installing solar panels in your home. They could also be used to help you cover an unexpected expense, like a medical bill or car repairs.
The money you lend is paid directly into your bank account and is paid back in fixed, monthly instalments over the course of 7 to 72 months.
- The Consolidation Loan
A consolidation loan is designed to help merge all your debts with different lenders into one place. You would use the money to pay back all your smaller debts at once, allowing you to have one monthly payment to make instead of many smaller payments.
- The 15% Loan
This loan has a fixed interest rate of 15%. You’re able to lend an amount of up to R50 000 and repay it over the course of 6 to 18 months. The instalment you pay back each month stays the same.
These loans are usually used for a smaller expense that you know you’re able to repay over a shorter time period.
What’s the next step?
If you could benefit from a Personal Loan from African Bank, you’re able to easily apply online, via telephone or at one of our branches. Our friendly call centre consultants will happily take you through the steps of applying as well as explaining the terms and conditions that come with the loan.
Planning to buy a car, renovate your home or improve your education? Our Personal Loan offers many features which give you more value than you might have expected.